North Shore Uranium Ltd. (NSU:TSX) completed a maiden drill program at the Falcon uranium project in Saskatchewan's Athabasca basin, and the results so far are encouraging, according to a news release.
"The initial results from the program also reinforce our belief that Falcon is a highly prospective uranium property and affirm the prospectivity of other compelling untested electromagnetic conductors (EMs) that have been identified," President and Chief Executive Officer Brooke Clements said in the release.
At Falcon, three targets associated with EM conductors were drilled: P03, P08 and P12.
Drilling in P03 and P08 intersected the targeted subvertical EM conductors and encountered favorable structures. The intersections wound up being very close to the depths predicted by the previously created three-dimensional plate models, and this "validates our team's exploration approach and techniques," Clements added.
Technical Analyst Clive Maund recommended North Shore as an immediate Strong Speculative Buy last month when it was CA$0.17 per share. Now, it is trading even lower.
In terms of radioactivity, total count gamma probe readings were elevated at P08 and P03, the maximum total count at the latter being 2,695 counts per second.
Overall, drilling confirmed the presence at P03 and P08 of subvertical basement structures with radioactivity, graphite, and alteration, noted the release. Fault zones and alteration like what were encountered at these two targets can be associated with basement-hosted uranium mineralization.
As for target P12, drilling had to be terminated before the EM conductor could be reached due to unstable ground conditions. As such, P12, in a prominent interpreted structural zone near several other priority targets in the South Walker area, should be drilled again.
Why This Company?
North Shore Uranium, headquartered in British Columbia, is an "early-stage explorer with significant upside potential in the Athabasca basin," David Talbot, head of equity research at Red Cloud Securities, described in a February 12 report. The company is focused on the basin's eastern margin, where it is exploring for economic uranium deposits. It is also evaluating opportunities to add more properties in the region to its portfolio.
Accordingly, North Shore currently has exploration programs underway at two projects in the basin's eastern margin: Falcon and 90 kilometers to the northeast, West Bear.
The Athabasca basin, a Tier 1 jurisdiction, is "home to the world's highest-grade uranium deposits that provide over 20% of the world's uranium supply," noted Technical Analyst Clive Maund in a February report on North Shore Uranium. "New exploration methods and technical developments have yielded multiple significant discoveries on and near the perimeter of the basin, where there is the advantage of much less overburden than exists towards the center of the basin."
Also, there are Cameco Corp.'s (CCO:TSX; CCJ:NYSE) Key Lake uranium mill and former mine and its Cigar Lake and MacArthur River projects along with Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) and Orano Canada's McClean Lake projects. One other big name active in the region is NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT).
"Since they are in the same belt along the east side of the Athabasca basin, the prospects for significant discoveries on North Shore's claims are clearly very good," added Maund.
As for Falcon, it comprises 15 mineral claims. North Shore owns four, covering 12,791 hectares (12,791 ha), and Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) owns the rest, spanning 42,908 ha. However, North Share has the option to earn an initial 80% stake on the rest, which it is working toward now, and to purchase the remaining 20% interest after the initial earn-in.
Limited exploration has been done at Falcon; however, 28 holes drilled in 2008 returned up to 0.235% U308. Most recently, North Shore Uranium analyzed EM data together with geophysical data procured in 2022 and identified high-priority targets in areas of limited previous drilling.
"The new uranium discovery potential at Falcon is significant, including shallow basement-hosted unconformity-style mineralization and pegmatite-hosted mineralization similar to that discovered at the Fraser Lakes zone B uranium resource located just 3 km south of the property," the company said.
As for West Bear, North Shore Uranium is working to earn a 75% interest in it from Gem Oil Inc. by April 11, 2025. The project consists of five claims totaling 4,511 ha.
Last year, North Shore conducted a 600 line-km airborne, high-resolution gravity-magnetic-radiometric survey over most of the southern block of four claims at West Bear. Based on the results and historical geophysical data, the company identified three target areas and plans to follow up on those this year.
Uranium Demand and Price Rising
According to Red Cloud Securities, the outlook for nuclear power and small modular reactors in the short and long term is positive, reported Talbot last month. This is evidenced by "proactive government policies, public acceptance, better economics, climate change impacts and security of supply," he wrote.
This improved attitude, continued Talbot, has led to increased uranium demand and higher uranium prices. Looking ahead, this bodes well for the uranium market and uranium companies that need incentives to make discoveries and develop new mines.
Since the start of 2023, the U308 price jumped 110% to US$101 per pound (US101/lb) in January 2024, thereby surpassing Red Cloud's long-term price assumption of US$85/lb. The price has since retreated to just under US$90/lb. Red Cloud revised its uranium spot price estimates, and they steadily increase over the next four years. They are US$120/lb for 2024, US$135/lb for 2025, US$150/lb for 2026 and US$175/lb for 2027.
"Fortunately, we are starting to see the much-needed uranium price incentive, leading to exploration and mining projects being taken off the shelf, new exploration companies are emerging, and equity investment into uranium stocks continues at a torrid pace," Talbot wrote.
Technical Analyst Maund wrote in a February report the nuclear power industry is in "growth mode and is deemed to be of critical importance in meeting carbon dioxide emission reduction goals with the recent COP28 declaration to triple nuclear power by 2050." He also highlighted that the uranium price is trending upward.
"This is reflected in the powerful bull markets that we are seeing in big uranium stocks like Cameco Corp., and we are now seeing increased "trickledown" into the midcap and smaller stocks," he wrote.
One of these smaller stocks is North Shore Uranium, which Maund recommended as an immediate Strong Speculative Buy last month when it was CA$0.17 per share. Now, it is trading even lower.
Maund wrote the stock then was at a good entry point. The trading pattern had formed the second low of a double bottom and the price had not moved up much subsequently.
"The stock looks ready to break out of this base pattern soon to commence the expected new bull market," he wrote.
The Catalysts: Exploration Results
Regarding Falcon, an upcoming catalyst is the analytical results of the recently submitted drill core samples, said the company. It is expected to receive them in four to six weeks. These data will inform North Shore's future work related to the P03 and P08 targets.
Streetwise Ownership Overview*
North Shore Uranium Ltd. (NSU:TSX)
| Strike Price | Number | Expiry Date |
|---|---|---|
| $0.1 | 465,000 | 03/22/2024 |
| $0.3 | 210,014 | 10/26/2025 |
Meanwhile, the company will continue to prospect, map, and sample other high-priority targets at Falcon, and further evaluate its geographic characteristics.
At West Bear, North Shore Uranium is evaluating select targets identified from the airborne survey and prioritizing follow-up work to be done on those in the field.
Ownership and Share Structure
According to the North Shore, there are 36,830,960 shares outstanding, and 45% of the shares are held by management, directors, and founding investors.
CEO Brooke Clements owns 3.30%, with 1.22 million shares.
The company told Streetwise, "Directors and founding investors took down 1.10 million of the 7.7 million shares in the initial financing, which closed on October 31, 2023, 14.3% of the offering. This is a sign of our commitment to building a strong company."
According to Market Watch, has traded in the 52-week range between CA$0.12 and CA$0.30.
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Important Disclosures:
- Skyharbour Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition,North Shore Uranium Ltd. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of North Shore Uranium Ltd., Skyharbour Resources Ltd., and Cameco Corp.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Contributing Author Disclosures:
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed.
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor.
